Manufacturing Monday 11.25.2024: Geopolitical and Administrative Changes — Finding and Addressing the Risks You Aren’t Losing Sleep Over (Yet)

I think we can all agree that some major shifts in global trade policies, tariffs, and administrative priorities are rapidly approaching. While headline-grabbing issues like tariffs and supply chain disruptions make headlines, the real risks—and opportunities—often lie in the details. These “non-events” can have significant downstream impacts that many manufacturers aren’t prepared for, from supply chain integrity concerns to internal process inefficiencies.

With the right tools and strategies, manufacturers can uncover insights hidden in their systems, mitigating risks before they escalate.  As one executive put it, “Customers don’t want to tell us when something’s wrong—we need to be proactive.”

Finding and adapting to “the non-event”

Let’s look more at the tariff conversation:  How will they influence internal costs, supplier relationships, and customer pricing? Are your sourcing strategies resilient enough to withstand policy changes? Using tools like process intelligence, Ashling maps these ripple effects, empowering you to take targeted, proactive actions.

Last week, Industry Week held the webinar, “Preparing for Trump to Shift the Manufacturing Trade Environment (Production Pulse),” highlighting several key concerns and strategies:

• Tariff Risk Exposure: China and Mexico remain top concerns, but the focus is expanding to global trade relationships.
• Customs Review: Customs agencies are increasing scrutiny on supply chain integrity, including forced labor compliance and third-country sourcing practices.
• Proactive Planning: Organizations must identify if products are genuinely sourced from compliant countries to avoid detentions and tariff penalties.

During the webinar, a few recommendations were called out that are prime candidates for Ashling execution and further Process Intelligence monitoring, a great example of the transition from industry theme to tactical response:

• Recommended Actions:
  1. Conduct customs reviews of top SKUs.
  2. Implement robust tariff risk assessments to identify vulnerabilities and alternatives.
  3. Monitor real-time inventory and shipping costs.

Tactical How-To:

Ashling supports manufacturers by combining advanced IA tools and methodologies to proactively manage these challenges:

• Process Intelligence: Provide visibility into critical processes to uncover inefficiencies caused by trade shifts or policy changes.
• AI Analytics: Predict the downstream impacts of tariffs and supply chain changes, enabling smarter sourcing, labor, and production decisions.
• Automation (Compliance): Ensure adherence to evolving customs regulations and supply chain transparency to avoid detentions and penalties.
• Scenario Planning: Use AI and machine learning to simulate “what-if” scenarios and evaluate the best courses of action.

These solutions help manufacturers transition from a reactive approach to proactive decision-making, aligning with the Industry 4.0 Leaders' Mindset of automating decisions rather than just processes. (Read more here.)

The real question isn’t what’s keeping you up at night—but what isn’t.   

Are you prepared to handle the risks lurking beneath the surface? Are you being proactive or reactive?  With tools to make sense of your data and processes,

Ashling can help you uncover opportunities, mitigate risks, and ensure resilience. Let’s chat about how we can support your journey. 

Want Manufacturing insights like these delivered straight to your inbox? Sign up for our Manufacturing Mondays newsletter below.